Newell Brands (NWL) risk factors, FY2024 10-K

Strategic and Operational Risks

1. 01The Company is subject to intense competition in a marketplace dominated by large omni-channel and e-commerce retailers
2. 02The Company’s customers may further consolidate, which could materially adversely affect the Company’s sales and margins
3. 03The Company’s sales are dependent on purchases by several large customers and any significant decline in these purchases or pressure from these customers to reduce prices could have a negative effect on the Company’s future financial performance
4. 04If the Company is unable to innovate and commercialize a continuing stream of new products that create demand, the Company’s ability to compete in the marketplace and financial results may be adversely impacted
5. 05If the Company does not continue to develop and maintain leading brands or realize the anticipated benefits of advertising and promotion spend over the long term, its operating results may suffer
6. 06Failure to further expand the Company’s e-commerce business, despite e-commerce investments, may materially and adversely affect the Company’s market position, net sales and financial performance
7. 07The Company’s plans to execute its turnaround plan and restructuring initiatives, improve productivity, reduce complexity and costs may not be successful, which would materially adversely affect its financial results
8. 08The Company’s operations are dependent upon third-party vendors and suppliers whose failure to perform adequately could disrupt the Company’s business operations
9. 09The Company may use artificial intelligence in its business, and challenges with properly managing its use could result in reputational harm, competitive harm, and legal liability, and could adversely affect the Company’s business
10. 10A cyber-attack or failure of one or more key information technology systems, networks, processes, associated sites or service providers could have a material adverse impact on the Company’s business or reputation
11. 11The Company may face particular data protection and privacy risks in connection with the European Union’s Global Data Protection Regulation, the California Consumer Privacy Act and other privacy laws and regulations
12. 12The Company’s operating results can be adversely affected by inflation, changes in the cost or availability of raw materials, labor, energy, transportation and other necessary supplies and services, as well as the impact of tariffs
13. 13Unfavorable shifts in industry-wide demand for the Company’s products could result in inventory valuation risk
14. 14introductions, which eliminate demand for existing products. Remaining inventory balances are adjusted to approximate net realizable market value
15. 15The Company may not be able to attract, retain and develop key talent
16. 16Damage to the Company’s reputation or loss of consumer confidence could have an adverse effect on the Company’s business
17. 17A deterioration in labor relations could adversely impact the Company’s global business
18. 18Risks related to the strength of global retail, commercial and industrial sectors and changes in foreign, cultural, political and financial market conditions could impair the Company’s international operations and financial performance
19. 19In addition, our global operations expose us to risks associated with public health crises, such as pandemics and epidemics, which could harm our business and cause our operational results to suffer

Financial Risks

1. 20The Company has substantial indebtedness, which could materially and adversely affect the Company and its financial position, including decreasing its business flexibility, impacting its ratings and increasing its borrowing costs
2. 21Reductions in the Company’s credit ratings could materially and adversely affect its business, availability of future borrowings, financial condition and results of operations
3. 22Failure to maintain effective internal control over financial reporting could result in material misstatements in our financial statements, and our failure to meet our reporting and financial obligations, which in turn could have a negative impact on our financial condition
4. 23limitations, including the possibility of human error, the circumvention or overriding of controls, or fraud. Effective internal controls can provide only reasonable assurance with respect to the preparation and fair presentation of financial statements
5. 24Continued declines in the future expected cash flows for the Company’s businesses or changes to underlying assumptions used to calculate fair value could result in additional impairment charges which could have a material adverse effect on the Company’s financial results of operations
6. 25The Company is exposed to both foreign currency translation and transaction risks that may materially adversely affect the Company’s operating results, financial condition and liquidity
7. 26Circumstances associated with divestitures and brand or product line exits could adversely affect the Company’s results of operations and financial condition

Legal, Tax and Regulatory Risks

1. 27Governmental investigations or actions by other third parties could have a material adverse effect on management and the Company’s business operations
2. 28The Company’s businesses and operations are subject to regulation in the U.S. and abroad
3. 29current income tax impact of Pillar Two is immaterial, however we will continue to monitor both U.S. and international legislative developments to assess for any potential impacts
4. 30The resolution of the Company’s tax contingencies may result in additional tax liabilities, which could adversely impact the Company’s cash flows and results of operations
5. 31The Company may incur significant costs in order to comply with environmental remediation obligations
6. 32The Company’s business involves the potential for product recalls, product liability and other claims against it, which could affect its earnings and financial condition
7. 33Company also faces exposure to product liability claims if one of its products is alleged to have resulted in property damage, bodily injury or other adverse effects
8. 34If the Company fails to adequately protect its intellectual property rights, competitors may manufacture and market the same or similar products, which could adversely affect the Company’s market share and results of operations
9. 35If the Company is found to have infringed the intellectual property rights of others or cannot obtain necessary intellectual property rights from others, its competitiveness could be negatively impaired
10. 36Climate change and increased focus by governmental and non-governmental organizations and customers on sustainability issues, including those related to climate change, may adversely affect our business and financial results
11. 37Expectations relating to environmental, social and governance considerations expose the Company to potential liabilities, increased costs, reputational harm and other adverse effects on the Company’s business